Backgrounder

When law enforcers place themselves above the Constitution

Rather than safeguarding justice, Indonesia's legal instruments are increasingly being bent to serve institutional interests. The standoff between the Constitutional Court (MK) and the National Police over the assignment of active officers to civilian posts exposes not merely regulatory inconsistency, but a deeper disregard for constitutional authority.

DHE policy revised again, but gains to foreign reserves remain elusive

Indonesia's natural resource DHE policy has entered its third revision after repeated attempts failed to significantly bolster foreign exchange reserves or deepen onshore foreign currency liquidity. The latest amendment relaxes the mandatory rupiah conversion requirement from 100 percent to 50 percent and requires DHE placement in Himbara banks. While intended to ease pressure on exporters, the relaxation raises questions over whether locking DHE onshore can be effective in the long run.

Edition

December 12, 2025

Army undergoes massive expansion despite absence of real external threats

The Army is creating 750 new battalions of combat troops in the next four years to ensure presence in every district nationwide, but in the absence of a credible explanation of where the new external threats are coming from, the plan raises speculations about the real motive.

Sumatra’s flood aftermath and the consequences of fiscal neglect

Grief has engulfed Sumatra. Flash floods and landslides have devastated the provinces of Aceh, North Sumatra and West Sumatra, leaving behind not only the ruins of homes and infrastructure but also the deepening realities of hunger, displacement and profound uncertainty. Yet the government's decision to slash disaster funding to its lowest level in years is now testing its ability to help the affected rebuild their lives.

Edition

December 5, 2025

Prabowo’s sluggish response to devastating Sumatra floods

On Nov. 25, flash floods triggered by Cyclone Senyar struck Sumatra, severely damaging Aceh, North Sumatra, and West Sumatra. Two weeks later, more than 3 million people had been affected, with 1 million displaced, 836 dead, 518 still missing, and some 2,700 injured as of 16.00 Western Indonesia Time (WIB) on Dec. 4.

Final warning to customs office: Reform or be replaced

Finance Minister Purbaya Yudhi Sadewa has issued a stark ultimatum to the Directorate General of Customs and Excise (DJBC): repair its battered reputation within a year or face the possibility of another institutional freeze. The warning puts the future of roughly 16,000 employees on the line. But the deeper question is whether the DJBC can truly rebuild itself or whether this threat simply postpones the next cycle of breakdown and intervention.

Edition

November 28, 2025

Power play shakes NU leadership

Indonesia's largest Muslim organization, Nahdlatul Ulama (NU), is facing yet another severe internal rift among its top leadership following the dismissal of its chairman Yahya Cholil Staquf by the organization's supreme council, the Syuriah. Although his close associations with pro-Israel figures have been publicly cited as the cause, the underlying motive behind the firing appears to stem from intense political rivalry among NU elites.

When executives criminalized for doing their jobs

Following public outcry, President Prabowo Subianto granted rehabilitation to three former executives of state-owned PT ASDP Indonesia Ferry convicted in the corruption case surrounding the company's acquisition of ferry operator PT Jembatan Nusantara (JN). For many observers, the prosecution of former president director Ira Puspadewi and two other executives epitomizes the criminalization of business judgment.